CHARLOTTE, N.C., October 30, 2024 (GLOBE NEWSWIRE) -- SPX Technologies, Inc. (NYSE:SPXC) (“SPX”, the “Company”, “we” or “our”) today reported results for the third quarter ended September 28, 2024.

Gene Lowe, President and CEO, remarked, “I am pleased with our Q3 financial results, which include solid growth in company revenue and substantial margin expansion in both our HVAC and Detection & Measurement segments.”

Mr. Lowe continued, “We continue to make significant progress on our sustainability initiative, including reducing carbon intensity levels ahead of schedule and introducing numerous innovative climate conscious solutions. We also further advanced our continuous improvement initiative, which is driving increased production throughput and efficiency.”

Mr. Lowe commented further, “Our businesses continue to execute well operationally, and demand remains solid in our HVAC and Detection & Measurement segments. We are well positioned to achieve our full-year guidance, including Adjusted EBITDA* growth of approximately 35% and Adjusted EPS* growth of approximately 28% at the midpoint of our range.”

For the third quarter of 2024, the company reported revenue of $483.7 million and operating income of $78.9 million, compared with revenue of $448.7 million and operating income of $57.7 million in the third quarter of 2023. Net income of $50.2 million for the third quarter of 2024 compares with a loss of ($20.4) million in the third quarter of 2023. Diluted income per share from continuing operations in the third quarter of 2024 was $1.08, compared with $0.76 in the third quarter of 2023.

For the third quarter of 2024, Adjusted EBITDA* was $104.0 million, compared with $81.9 million in the third quarter of 2023, or an increase of 27.0%. Adjusted earnings per share* in the third quarter of 2024 was $1.39, compared with $1.06 in the third quarter of 2023. Adjusted EBITDA* and Adjusted earnings per share* exclude amortization expense and acquisition-related costs, among other items.

Third Quarter and Year-to-Date Financial Comparisons:

($ millions)						Q3 2024						Q3 2023						2024 YTD						2023 YTD
Revenue						$	483.7					$	448.7					$	1,450.2					$	1,271.8
Consolidated operating income						78.9						57.7						218.1						158.8
Income from continuing operations						50.9						35.7						145.3						113.1
Net income						50.2						(20.4)						143.4						58.4

Consolidated segment income*						113.8						91.6						331.2						250.4
Adjusted operating income*						97.5						75.8						284.7						203.5
Adjusted EBITDA*						104.0						81.9						304.9						219.7

* Non-GAAP financial measure. See attached schedules for reconciliation of each historical non-GAAP measure to the respective most comparable GAAP financial measure. A reconciliation of non-GAAP guidance measures is not practicable and, accordingly, is not included.

Revenue for the third quarter of 2024 was $335.3 million, compared with $289.2 million in the third quarter of 2023, an increase of 15.9%, including a 9.0% increase in organic revenue*, a 6.8% increase from the acquisition of Ingénia, and a 0.1% favorable impact related to the translation effect of currency fluctuation. The growth in organic revenue* was due primarily to increased volume of cooling products driven by continued strength in demand and higher throughput resulting from expanded production capacity.

Segment income in the third quarter of 2024 was $80.0 million, or 23.9% of revenue. This compares with segment income of $58.3 million, or 20.2% of revenue in the third quarter of 2023. The increase in segment income and 370 basis points increase in segment income margin were primarily due to the revenue growth mentioned above and associated operating leverage, as well as the impact of continuous improvement initiatives, partially offset by increases in personnel costs due to annual merit increases and growth-related headcount additions.

Revenue for the third quarter of 2024 was $148.4 million, compared with $159.5 million in the third quarter of 2023, a decrease of (7.0)%, including a 0.8% favorable impact related to the translation effect of currency fluctuation. The organic revenue* decrease was primarily driven by lower large project volume within our communication technologies business associated with a larger-than-typical project that executed throughout 2023 and completed during the first quarter of 2024. These declines were partially offset by higher project volumes at our transportation and aids to navigation businesses, where volume can vary from period to period based on project execution timing.

Segment income for the third quarter of 2024 was $33.8 million, or 22.8% of revenue. This compares with segment income of $33.3 million, or 20.9% of revenue in the third quarter of 2023. The increase in segment income and 190 basis points increase in segment income margin were primarily due to increased volume and more favorable product mix associated with projects within our transportation and aids to navigation businesses, and the impact of continuous improvement initiatives. This increase was partially offset by the reduction in income associated with the volume declines from the larger-than-typical project within our communications technologies business mentioned above.

Financial Update: As of September 28, 2024, SPX Technologies had total outstanding debt of $737.8 million and total cash of $129.4 million. During the third quarter of 2024, SPX’s net operating cash flow from continuing operations totaled $77.0 million. Capital expenditures for continuing operations for the third quarter of 2024 were $7.9 million.

SPX continues to target full-year 2024 guidance for adjusted EBITDA* in a range of $410-$430 million, and adjusted earnings per share* in a range of $5.45-$5.60. The Company is narrowing full-year 2024 revenue guidance to a range of $1.97-$2.00 billion, from a prior range of $1.97-$2.02 billion.

Segment and company performance is expected to be as follows:

Form 10-Q: The company expects to file its quarterly report on Form 10-Q for the quarter ended September 28, 2024 with the Securities and Exchange Commission on or before November 7, 2024. This press release should be read in conjunction with that filing, which will be available on the company's website at www.spx.com, in the Investor Relations section.

Conference Call: SPX Technologies will host a conference call at 4:45 p.m. (EDT) today to discuss third quarter results. The call will be simultaneously webcast via the company's website at www.spx.com and the slide presentation will be available in the Investor Relations section of the site.

Dial in: 1-833-630-1956

From outside the United States: +1-412-317-1837

Those interested in participating should dial in five minutes prior to the start time and ask to be connected to the SPX Technologies call.

Dial in: 1-877-344-7529

From outside the United States: 1-412-317-0088

Replay Access Code: 4037679

Upcoming Investor Events: Company management plans to meet with investors during the fourth quarter of 2024 and the company will also be participating in the Baird Industrials Conference on November 13th in Chicago, the Wolfe Research Small and Mid-Cap Conference on December 4th in New York City, and virtually in the Sidoti Small Cap Conference on December 5th.

About SPX Technologies, Inc.: SPX Technologies, Inc. is a diversified, global supplier of highly engineered products and technologies, holding leadership positions in the HVAC and detection and measurement markets. Based in Charlotte, North Carolina, SPX has more than 4,100 employees in 15 countries. SPX is listed on the New York Stock Exchange under the ticker symbol “SPXC.” For more information, please visit www.spx.com.

Non-GAAP Financial Information: This press release contains certain non-GAAP financial measures, including consolidated segment income, adjusted operating income, adjusted income from continuing operations before income taxes, adjusted income from continuing operations, adjusted earnings per share from continuing operations (or, adjusted EPS), EBITDA, Adjusted EBITDA, and organic revenue growth (decline). These non-GAAP financial measures do not provide investors with an accurate measure of, and should not be used as a substitute for, the comparable financial measures as determined in accordance with accounting principles generally accepted in the United States (“GAAP”). The Company believes these non-GAAP financial measures, when read in conjunction with the comparable GAAP financial measures, give investors a useful tool to assess and understand the Company’s overall financial performance, because they exclude items of income or expense that the Company believes are not reflective of its ongoing operating performance, allowing for a better period-to-period comparison of operations of the Company. Additionally, the Company’s management uses these non-GAAP financial measures as measures of the Company’s performance. The Company acknowledges that there are many items that impact a company’s reported results and the adjustments reflected in these non-GAAP measures are not intended to present all items that may have impacted these results. In addition, these non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies.

Refer to the tables included in this press release for the components of each of the non-GAAP financial measures, and for the reconciliations of historical non-GAAP financial measures to their respective comparable GAAP measures. Our non-GAAP financial guidance excludes items, which would be included in our GAAP financial measures, that we do not consider indicative of our on-going performance; and are calculated in a manner consistent with the presentation of the similarly titled historical non-GAAP measures presented in this press release. These items include, but are not limited to, acquisition costs, costs associated with dispositions, and potential non-cash income or expense items associated with changes in market interest rates and actuarial or other data related to our pension and postretirement plans, as the ultimate aggregate amounts associated with these items are out of our control and/or cannot be reasonably predicted. Accordingly, a reconciliation of our non-GAAP financial guidance to the most comparable GAAP financial measures is not practicable. Full-year guidance excludes changes in the number of shares outstanding; impacts from future acquisitions, dispositions and related transaction costs, restructuring costs, incremental impacts of tariffs and trade tensions on market demand and costs subsequent to the end of the third quarter, the impact of foreign exchange rate changes subsequent to the end of the third quarter, and environmental and litigation charges.

Forward Looking Statements: Certain statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. Please read these results in conjunction with the Company’s documents filed with the Securities and Exchange Commission, including the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. These filings identify important risk factors and other uncertainties that could cause actual results to differ from those contained in the forward-looking statements, including the following: cyclical changes and specific industry events in the Company’s markets; changes in anticipated capital investment and maintenance expenditures by customers; availability, limitations or cost increases of raw materials and/or commodities that cannot be recovered in product pricing; the impact of competition on profit margins and the Company’s ability to maintain or increase market share; inadequate performance by third-party suppliers and subcontractors for outsourced products, components and services and other supply-chain risks; the uncertainty of claims resolutions with respect to environmental and other contingent liabilities; the impact of climate change and any legal or regulatory actions taken in response there to; cyber-security risks; risks with respect to the protection of intellectual property, including with respect to the Company’s digitalization initiatives; the impact of overruns, inflation and the incurrence of delays with respect to long-term fixed-price contracts; defects or errors in current or planned products; the impact of pandemics and governmental and other actions taken in response; domestic economic, political, legal, accounting and business developments adversely affecting the Company’s business, including regulatory changes; changes in worldwide economic conditions, including as a result of geopolitical conflicts; uncertainties with respect to the Company’s ability to identify acceptable acquisition targets; uncertainties surrounding timing and successful completion of acquisition or disposition transactions, including with respect to integrating acquisitions and achieving cost savings or other benefits from acquisitions; the impact of retained liabilities of disposed businesses; potential labor disputes; and extreme weather conditions and natural and other disasters.

Actual results may differ materially from these statements. The words “guidance,” “believe,” “targeting,” “expect,” “anticipate,” “project” and similar expressions identify forward-looking statements. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.

Statements in this press release speak only as of the date of this press release, and SPX disclaims any responsibility to update or revise such statements, except as required by law.

SOURCE SPX Technologies, Inc.

Paul Clegg, VP, Investor Relations and Communications

Phone: 980-474-3806

E-mail: spx.investor@spx.com

Source: SPX Technologies, Inc.

SPX TECHNOLOGIES, INC. AND SUBSIDIARIES
RESULTS OF REPORTABLE SEGMENTS
(Unaudited; in millions)
						Three months ended																								Nine months ended
						September 28, 2024						September 30, 2023						Δ						%/bps						September 28, 2024						September 30, 2023						Δ						%/bps
HVAC reportable segment
Revenues						$	335.3					$	289.2					$	46.1					15.9%						$	994.2					$	809.8					$	184.4					22.8%
Gross profit						129.3						101.8						27.5												379.0						289.2						89.8
Selling, general and administrative expense						49.3						43.5						5.8												146.9						128.0						18.9
Income						$	80.0					$	58.3					$	21.7					37.2%						$	232.1					$	161.2					$	70.9					44.0%
as a percent of revenues						23.9		%				20.2		%										370bps						23.3		%				19.9		%										340bps
Detection & Measurement reportable segment
Revenues						$	148.4					$	159.5					$	(11.1)					(7.0)%						$	456.0					$	462.0					$	(6.0)					(1.3)%
Gross profit						68.3						69.3						(1.0)												204.1						196.5						7.6
Selling, general and administrative expense						34.5						36.0						(1.5)												105.0						107.3						(2.3)
Income						$	33.8					$	33.3					$	0.5					1.5%						$	99.1					$	89.2					$	9.9					11.1%
as a percent of revenues						22.8		%				20.9		%										190bps						21.7		%				19.3		%										240bps
Consolidated Revenues						$	483.7					$	448.7					$	35.0					7.8%						$	1,450.2					$	1,271.8					$	178.4					14.0%
Consolidated Operating Income						78.9						57.7						21.2						36.7%						218.1						158.8						59.3						37.3%
as a percent of revenues						16.3		%				12.9		%										340bps						15.0		%				12.5		%										250bps
Consolidated Segment Income						113.8						91.6						22.2						24.2%						331.2						250.4						80.8						32.3%
as a percent of revenues						23.5		%				20.4		%										310bps						22.8		%				19.7		%										310bps
Consolidated operating income						$	78.9					$	57.7					$	21.2											$	218.1					$	158.8					$	59.3
Exclude:
Corporate expense						12.4						13.0						(0.6)												38.3						44.2						(5.9)
Acquisition-related and other costs (1)						1.4						2.9						(1.5)												6.3						5.0						1.3
Long-term incentive compensation expense						4.0						3.4						0.6												11.0						10.0						1.0
Amortization of intangible assets (2)						16.6						14.6						2.0												48.2						32.4						15.8
Special charges, net						0.5						—						0.5												0.9						—						0.9
Other operating expense, net (3)						—						—						—												8.4						—						8.4
Consolidated segment income						$	113.8					$	91.6					$	22.2					24.2%						$	331.2					$	250.4					$	80.8					32.3%
as a percent of revenues						23.5		%				20.4		%										310bps						22.8		%				19.7		%										310bps
(1) Represents integration costs incurred of $1.4 and $6.3 during the three and nine months ended September 28, 2024, respectively, and $2.9 and $5.0 during the three and nine months ended September 30, 2023, respectively, including additional “Cost of products sold” related to the step-up of inventory (to fair value) acquired in connection with the Ingénia acquisition of $1.8 during the nine months ended September 28, 2024, and the ASPEQ acquisition of $2.5 and $3.6 during the three and nine months ended September 30, 2023, respectively.
(2) Represents amortization expense associated with acquired intangible assets.
(3) Represents a charge of $8.4 associated with a settlement with the seller of ULC Robotics (“ULC”) regarding additional contingent consideration.